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Diminishing Returns
A rule in economics that asserts once investments in a specific sector reach beyond a certain threshold, the returns on those investments will not keep rising if all other factors stay unchanged.
Marginal Costs
The additional cost incurred by producing one extra unit of a product or service, crucial for understanding economic efficiency and pricing.
Variable Costs
Expenses that vary directly with the level of production or output.
Long-Run Average Total Cost
The average cost per unit of output where all inputs are considered variable, calculated over a period where firms can adjust all factors of production.
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